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Chelsea Therapeutics Falls 15% Amid Corp Reorganization

Shares of Chelsea Therapeutics (NASDAQ: CHTP) are seeing increased weakness during Tuesday's trading session after the company announced it will implement corporate reorganization.

The corporate reorganization includes a reduction in force, executive changes and changes to the Company's Board of Directors. The reorganization also includes a plan to explore and evaluate strategic options for the Company, all with the goal of optimizing long-term stockholder value.

As part of the reorganization, Chelsea's Board of Directors expects to significantly reduce the company's headcount, retaining only those employees necessary to gain marketing authorization of Northera(TM) (droxidopa) in the U.S. for the treatment of symptomatic neurogenic orthostatic hypotension in patients with primary autonomic failure.

As part of this effort, the Company plans to stop patient enrollment in its ongoing 306B study in July, which should result in data by year-end, and will evaluate additional study designs required to support marketing authorization.

At the executive level, Simon Pedder, Ph.D. Founder, President and CEO, has resigned as a director, officer and employee of the company, effective immediately.

Tuesday, shares of Chelsea Therapeutics are trading down about 14 percent, at about $1.06 per share.